Is It Safe to Use BitMEX? How Reliable Is It?
BitMEX is widely found to be quite reliable, owing mostly to its high security levels. This trading platform and exchange uses multi-signature deposits and withdrawal plans that are accessible and available to its partners only. BitMEX also uses Amazon Web Services to protect its servers with two-step authentication and text messages. Hardware tokens are an additional security feature.
State-of-the-Art Risk Check System
BitMEX’s risk check system mandates that the amount of all account holdings on the site be zero. If this isn’t the case, all trading comes to a stop at once. Private keys are never stored in the cloud, and the exchange’s employees check all withdrawals individually by hand. Deposit addresses are verified externally to guarantee that the respective keys match. If they do not, the system shuts down immediately.
What is more, this trading platform is written in the database and tool set kdb+, which is the preferred choice of some major financial institutions regarding high frequency trading applications.
Compared to competitors like Bittrex and Poloniex, the BitMEX engine is also faster and more reliable. It features email notifications, and all communication is secured with PGP encryption.
BitMEX has not been hacked in its history. Still, that does not guarantee its future safety and stability. We recommend the following practices as you learn the ropes of BitMEX:
Ideally, your first deposit should be small, perhaps 0.06 BTC. There is no minimum deposit requirement – why not avail yourself?
Focus on XBT-USD
Focus on this perpetual swap, because it is the market with the largest volume. At first, ignore other markets, including Altcoin and Bitcoin futures.
Using the leverage slider bar, set the leverage at a maximum of 5x, ideally 3x. Do not select “Cross”, because thus you run the risk of exposing the entire equity balance.
When you launch your first trade, pay special attention to the Cost field. This indicates the maximum amount that you can lose. It goes without saying that your available balance must be higher than this.
BitMEX is rated as a safe platform, but it is clearly not one targeting amateur traders. The interface is complicated, which is why it can be very difficult for investors to get used to the exchange and even find their way around the website. On the plus side, it does provide a wide variety of instruments. Once an investor accumulates some experience with the platform, he or she will appreciate the wealth of information that it offers.